The world PLC market faced another decline for 2013

After a downturn in 2012, the global PLC market declined again in 2013, with revenue falling by 2.1% annually. The overall market for PLCs in the United States is growing strongly, IHS said. In end-user sectors, the fastest growing segments are the oil and gas and food and beverage industries.

08/13/2014


Courtesy: IHS TechnologyAfter a downturn in 2012, the global PLC market declined again in 2013, with revenue falling by 2.1% annually, as the U.S. market increased.

As the most mature market, Europe had the largest base for PLC sales in terms of revenue. However, it is very slowly dragging itself out of recession. With tight fiscal policies, tight credit conditions in several countries, excess industrial capacity and still relatively weak export demand, there are few signs of a strong upturn in the near future. In light of the lack of strong domestic market demand, the PLC market had encountered a small decline as a whole.

The U.S. market for PLCs is positive; the housing market continues to recover, consumer spending is rising, export markets are improving and the pace of capital spending is increasing. Because of that, the overall market for PLCs in the United States is growing strongly.

Looking at end-user sectors, the fastest growing segments are the oil and gas and food and beverage industries.

Asia Pacific, which has been one of the fastest growing regions in the past few years, had faced a much slower growth rate than before. China's market is the most likely reason for that.

China's leadership has singled out financial stability as its most important objective, with only moderate stimulus applied. Because of that, many investments have been delayed. Besides, China-as an export-focused market-had faced weakening demand from its leading trading partners, such as Europe. The PLC market had faced two-sided pressure from both domestic and foreign markets.

However, the Japanese market had a good year. The Japanese government pushed forward strong economic incentive plans since 2012 by applying fiscal stimulus, engaging in monetary easing and implementing structural reforms. But when turning into the U.S. dollar, the market showed a decline in growth because the currency had depreciated by more than 10% in terms of exchange from the Yen to the U.S. dollar.

- Alex Hong is senior analyst - industrial automation at IHS Technology. Edited by CFE Media. See more about IHS PLC market research here.

See more about Control Engineering research here.

See more about Plant Engineering research here.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
System integration: Best practices and technologies to help; Virtualization virtues; Cyber security advice; Motor system efficiency, savings; Product exclusives; Road to Hannover
Collaborative robotics: How to improve safety, return on investment; Industrial Internet of Things, Industrie 4.0: World views; High-performance HMI, Information Integration: OPC and OMG
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
click me